CANADA FX DEBT-C$ slightly weaker after U.S., Canada trade data

Wed Nov 4, 2015 9:14am EST
 
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* Canadian dollar at C$1.3082, or 76.44 U.S. cents
    * Bond prices flat to lower across the maturity curve

    TORONTO, Nov 4 (Reuters) - The Canadian dollar weakened
slightly against the U.S. dollar on Wednesday, as the greenback
broadly rose after data showed the U.S. trade deficit narrowed
to its lowest level in seven months in September.
    Canada's trade gap also narrowed more than expected, to
C$1.73 billion, helped by a modest pick up in exports including
consumer goods and energy products. 
    We are "maybe starting to see the dynamic of stronger U.S.
growth and a weaker Canadian dollar starting to boost trade in
Canada," said Benjamin Reitzes, senior economist at BMO Capital
Markets.
    He noted that "non-energy export volumes were up just a
little bit on the month, there's still some work to be done
there, but the trend appears to be higher after the weak spate
we had pretty much the first half of the year."
    * At 8:46 a.m. ET (1346 GMT), the Canadian dollar 
was trading at C$1.3082 to the greenback, or 76.44 U.S. cents,
weaker than Tuesday's official close of C$1.3052, or 76.62 U.S.
cents. That close was the currency's strongest finish in two
weeks.
    * Canadian government bond prices were flat to lower across
the maturity curve, with the two-year price flat to
yield 0.6 percent and the benchmark 10-year falling
10 Canadian cents to yield 1.626 percent.
    * The Canada-U.S. two-year bond spread was -18.3 basis
points, while the 10-year spread was -59.2 basis points.
    

 (Reporting by Alastair Sharp and Fergal Smith Editing by W
Simon)